Ulta Beauty Inc (ULTA)

Inventory turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cost of revenue	US$ in thousands	6,908,400	6,826,200	6,826,200	6,164,070	6,164,070
Inventory	US$ in thousands	1,968,210	1,696,780	1,742,140	1,603,450	1,563,920
Inventory turnover		3.51	4.02	3.92	3.84	3.94

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,908,400K ÷ $1,968,210K
= 3.51

Ulta Beauty Inc's inventory turnover ratio, a key indicator of how efficiently the company manages its inventory, has exhibited some fluctuations over the years. In January 2023, the inventory turnover was 3.94, slightly decreasing to 3.84 by the end of the same fiscal year. However, by January 2024, the ratio improved to 3.92 and further increased to 4.02 by February 2024. Nonetheless, by January 2025, there was a decrease in the inventory turnover to 3.51.

Overall, the variations in Ulta Beauty Inc's inventory turnover suggest changes in the company's inventory management strategies and demand for its products. It is essential for the company to closely monitor and analyze these fluctuations to optimize inventory levels and achieve a balance between carrying costs and stock availability.